KUALA LUMPUR: The Employees Provident Fund’s (EPF) high dividends for its two schemes in 2017 was reflective of the fund body’s well-diversified investment strategy, says CIMB Group Holdings Bhd chief executive officer Tengku Datuk Seri Zafrul Aziz.
“Malaysia’s EPF has proven to be one of the most successful retirement funds globally, and the commendable dividend rate is truly reflective of a well-diversified investment strategy.
“CIMB strongly supports EPF’s cause to make retirement a mainstream topic so that more youths can plan for it, whether through EPF or the PRS (private retirement scheme), as soon as they start working,” he said in a statement issued yesterday.
On Saturday, EPF declared a dividend of 6.90 per cent for its conventional savings for 2017, with payout amounting to RM44.15 billion. The payout for conventional savings is the highest since 1997.
The fund also declared a 6.40 per cent dividend for its Syariah savings 2017, with payout amounting to RM3.98 billion.
In total, the payout for 2017 amounts to RM48.13 billion, an increase of 29.8 per cent from 2016.
EPF syariah committee member Dr Zaharuddin Abd Rahman said the slight difference of 0.5 per cent in syariah dividend by the EPF was mainly due to funds invested in by the conventional savings had yielded higher returns last year.
“Syariah savings could only be invested in only one Islamic bank, hence no such returns were garnered from the yield from the conventional investments.
“Syariah-compliant stocks also experienced a downtrend in the telecommunication, oil and gas sectors in the last 18 months compared to the costs recorded when it was first purchased resulting into higher impairments.
“The 6.4 per cent dividend can be enjoyed by the contributors as it is due to its syariah compliance nature of the funds,” he added.